Commodity memory is an exceptionally volatile industry, and that's nothing new. That makes the concerns about Micron's (NYSE:MU) ASPs and weaker margins in the second quarter more or less par for the course. While it looks like the memory markets are on the road to recovery, investors have already seen a hefty rebound off the bottom and may want to ask themselves if they really need the turbulence and volatility that this stock is likely to produce in the coming year.
Fiscal Second Quarter Earnings Bring Trade-Offs
Micron's earnings were a mix of good and bad news. Revenue performance (down 1% sequentially) was respectable, but investors may take a little issue with how that performance came about. Shipment growth was pretty strong, but ASPs were generally weaker than expected. While shipments (in bits) rose 21% in DRAM and 36% in NAND, prices fell 16 and 23%, respectively. The NOR business was also weak, as revenue fell 25% sequentially.
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http://stocks.investopedia.com/stock-analysis/2012/Micron-Still-Searching-For-The-New-Normal-MU-INTC-TSM0326.aspx
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